Mrs. Lovett's Meat Pies Inc. has consulted with investment bankers and determined the interest rate it would pay for different capital structures, as shown below. Data for the risk-free rate, the market risk premium, an estimate of Mrs. Lovett's unlevered beta, and the tax rate are also shown below. Based on this information, what is the firm's optimal capital structure and what is the weighted average cost of capital at the optimal structure? Input Data Risk-free rate Market risk premium Unlevered beta Tax rate 4.5% 6.5% 0.7 35.0% Percent Financed with Before-tax Cost Debt (w.) Debt (rd) 0% 6.0% 10% 6.5% 20% 7.0% 30% 8.5% 40% 10.0% 50% 12.5% 60% 15. 70% 18.0% Fill in formulas in the yellow cells to find the optimum capital structure. A-T Cost of Debt (ra) Levered Beta Cost of Equity WACC Debt/Value Ratio (wa) 0% 10% 20% 30% 40% 50% 60% 70% Equity/Value Ratio (ws) 1.0 0.9 0.8 0.7 0.6 0.5 0.4 0.3 Debt/Equity Ratio (W/W) 0.00 0.11 0.25 0.43 0.67 1.00 1.50 2.33 WACC at optimum debt ratio = Optimum debt ratio =